WEB DESK
Mukesh Ambani’s Reliance Industries on Saturday announced acquisition of Future Group for Rs 24,713 crore to bolster its fast growing retail business.
“Reliance Retail Ventures Ltd (RRVL), subsidiary of Reliance Industries, will acquire the retail and wholesale business and the logistics and warehousing business from the Future Group as going concerns on a slump sale basis for lumpsum aggregate consideration of Rs 24,713 crore,” the company said in a statement.
Through the deal, Reliance will acquire Future Retail that owns the BigBazaar that sells everything from groceries to cosmetics and apparel, and Future Lifestyle Fashions Ltd that operates fashion discount chain Brand Factory.
While Reliance will takeover Future Consumer Ltd, which sells food, home and personal care products, Future Group’s financial and insurance business is not part of the deal.
The oil-to-chemical conglomerate’s retail venture is India’s largest offline retail company. Despite its recent online rollout, the company is keen to expand its offline presence. Future is a good fit in Reliance’s retail that helps it expand its offline retail presence and would see further improvement in margins due to improving scale.